Corporal Baird received the Medal for Gallantry (MG) for actions taken in combat in 2007 in Afghanistan.

Australian Defence Force

A Special Forces commando who died as he led an assault on an enemy-held building during fighting in an Afghan village last year has been posthumously awarded Australia's highest military honour, the Victoria Cross (VC).

Governor-General Quentin Bryce will present the posthumous honour to the late corporal's parents next Tuesday at Government House in Canberra.

Corporal Baird's family were in the House of Representatives to hear Prime Minster Tony Abbott announce the award this morning.

His father Doug Baird said his son, a veteran of five Special Forces tours, was a humble man who would have wanted praise to go to his unit as a whole.

Commando team leader was killed in final assault on building

Corporal Baird, from the 2 Commando Regiment, was shot dead during a battle to take an insurgent-held compound in the village of Ghawchak, in Afghanistan's Khod Valley, on June 22, 2013. He was the 40th Australian soldier to die in Afghanistan.

During the firefight, he repeatedly drew fire on himself to give his team members the chance to gain ground.

"Corporal Baird led an assault on an enemy-held compound," Mr Abbott told Parliament.

"On three separate occasions, under heavy fire, he forced the door of a building. Twice he was forced to withdraw to re-load and then to clear his rifle.

The Victoria Cross

It is the highest award for acts of bravery in wartime.

It was instituted in 1856 by Queen Victoria and made retrospective to 1854 to cover the Crimean War.

Before today 99 Australians had been awarded the Victoria Cross, dating back to the Boer War.

"We accept this award not only on behalf of Cameron but for all his brothers, his team, his company and his regiment."

Doug Baird said his son was an outstanding sportsman as a young man and was humble about his work as a soldier.

"He was very shy in the fact he was more for putting any praise on the actual unit itself, his team," he said.

"He was extremely humble sort of person that probably would prefer to see this thing be deflected."

Mr Baird fought back tears as he read out the soldier's code.

"'I do not compromise my moral courage. At all times I act in ways that will bring honour to Australia, credit upon the Army, my unit and my fellow soldiers'," he said.

"I think that sums Cameron up."

'We are poorer for his passing, richer for his living'

This is the fourth VC to have been awarded to Australian soldiers for gallantry during the war in Afghanistan.

Defence Force Chief General David Hurley said while "we don't talk of quotas for bravery" Afghanistan had been a "very hard war".

"I think this award recognises our soldiers and our service men and women who have been fighting in Afghanistan have fought a very hard war in the last five or six years - much of it fought amongst difficult terrain in urban environments," he said.

But he added, "this is recognition of a great act of bravery by a very special man."

Corporal Baird also received the Medal for Gallantry (MG) for actions taken in combat in 2007 in Afghanistan.

Mr Abbott told the House it was a "bittersweet" day.

"Our country has lost a citizen, a soldier, a hero. We are all the poorer for his passing but the richer for his living," he said.

"For all of us, this is a bittersweet day. Bitter because a fine man is gone and cannot be brought back. Sweet because he died for his mates doing what he lived for.